U.K. Signals Solar Subsidy Cut to Curb ‘Unacceptable Returns’

Energy Minister Greg Barker signaled the U.K. government will cut support for the solar energy industry, saying some investors were earning “unacceptable returns.”

Speaking to reporters at a conference in Birmingham, Barker said the Department for Energy and Climate Change would announce in the next few days its plans for adjusting the so-called feed- in tariff granting above market prices for solar energy.

He said the U.K. has experienced a “dramatic escalation” in installations of photovoltaic power plants and that the government budget needed to be protected from the amount of support it grants the industry.

“We need a credible path for a sustainable industry,” Barker said. He didn’t give details about the new rates that will be announced.

To contact the reporter on this story: Marc Roca in London at mroca6@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net